Labor Quality, Not Layoffs, Is the Real Hiring Challenge for Small Businesses

Despite steady employment levels and relatively few layoffs nationwide, small businesses are still struggling to hire. According to the National Federation of Independent Business, nearly half of small business owners say they aren’t getting qualified applicants for open roles—and a staggering 87% of those hiring in March reported they couldn’t find suitable candidates.

To stay competitive, many businesses are raising wages. But that comes at a cost—literally. Labor expenses are now the second biggest concern for small business owners, right behind the talent shortage itself. As a result, some are scaling back their hiring plans, while others are making do with leaner teams and longer hours.

It’s a tough hiring landscape—especially for small businesses without the brand recognition or budgets of larger employers. Staying adaptable and rethinking how we attract and retain talent is more important than ever.

We’re seeing this firsthand with our clients. Are you?